Modi visits Sweden after $11B Dutch chip deal with ASML
Modi arrives in Sweden on Sunday for bilateral talks with Prime Minister Kristersson and meetings with CEOs from the European Round Table for Industry. In the Netherlands, India elevated its relationship to strategic partnership level and signed an $11 billion deal for ASML and Tata Electronics to build a semiconductor plant in Gujarat. Modi called the accompanying India-EU free trade agreement "the mother of all deals." Bilateral trade with the Netherlands reached $27.8 billion last year. He will visit Norway for an India-Nordic Summit before concluding his tour in Italy on May 19.
South Korea warns Samsung strike could cost $667 million a day
Prime Minister Kim Min-seok said South Korea will pursue all options, including emergency arbitration, to prevent a labour strike at Samsung Electronics. Kim warned that one day of suspension at Samsung's semiconductor factory could cause direct losses of 1 trillion won, ballooning to 100 trillion won if materials had to be disposed of. Samsung accounts for 22.8 percent of South Korea's exports and 26 percent of the domestic stock market, employing 120,000 people and working with 1,700 suppliers. An emergency arbitration order would prohibit industrial action for 30 days while the National Labour Relations Commission conducts mediation.
Iran Blockade Costs Companies $25 Billion as Oil Tops $100
The US-Israeli war with Iran has cost companies worldwide at least $25 billion so far, with 279 firms citing defensive actions including price increases, production cuts, and suspended dividends. The blockade of the Strait of Hormuz has pushed oil above $100 a barrel, more than 50 percent higher than before the war. Airlines account for nearly $15 billion in damages. Corporate profits stayed buoyant through the first quarter, but second-quarter margin forecasts for S&P 500 industrials have already been cut, with analysts noting the true earnings impact has not yet fully materialized.
Fujimori to Face Sanchez in Peru June 7 Runoff
Peru's National Elections Board proclaimed right-wing candidate Keiko Fujimori and leftist Roberto Sanchez as the two finalists for the June 7 presidential runoff. Fujimori received 17.19% of the vote while Sanchez secured second place with 12.03%, narrowly edging out ultraconservative Rafael Lopez Aliaga who finished third with 11.91%. The JNE acknowledged "many difficulties and flaws in the logistical deployment" that delayed results by a month and announced a five-member oversight committee including academics from Peru, Chile, Uruguay, and Puerto Rico. The runoff is a rerun of the 2021 elections between Fujimori and Sanchez.
Ukraine hits Moscow oil refinery in largest drone attack
Ukraine launched one of its largest overnight drone attacks on Russia since the war began, killing at least four people near Moscow and striking the capital's oil refinery. Russian air defenses shot down 81 drones headed for the capital and 556 across the country in what Moscow called one of the largest assaults on the city since February 2022. The strikes appeared to be retaliation after a three-day ceasefire ended May 11, following which Russia killed 24 people in a Kyiv strike that included three children.
G7 finance ministers meet as Iran conflict rattles markets
G7 finance ministers are meeting in Paris amid economic disruption from the Iran war. The Strait of Hormuz remains closed, pushing Brent crude to $109.26 per barrel and U.S. 30-year Treasury yields to their highest since May 2025. British businesses are scaling back investment and hiring as job vacancies fell 7.7% in April. Chancellor Rachel Reeves will attend to coordinate international action. Economists remain pessimistic despite March's 0.3% GDP growth.
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- Iran Ceasefire Talks Stall as US Sets Harsh Terms. Washington demanded Iran operate only one nuclear site and transfer its highly enriched uranium stockpile, while refusing to release any frozen assets. Iranian military officials warned of 'unprecedented scenarios' if attacks resume.
- Taiwan president: We will not be sacrificed or traded. Lai Ching-te issued his first direct response to last week's Trump-Xi summit, vowing the island will not concede its sovereignty or democratic freedoms despite Trump's indication that a $14 billion arms package could serve as a negotiating chip.
- Mistral CEO: Europe has two years to build AI infrastructure. Arthur Mensch told France's National Assembly that US investment of $1 trillion next year will monopolize AI supply, leaving Europe permanently dependent unless it acts now.
- Japan to issue cybersecurity guidelines for advanced AI tools. Tokyo will urge software providers to use AI tools like Anthropic's Claude Mythos to detect vulnerabilities, as the company prepares to discuss systemic risks to global finance with regulators.
- Oil Surge Triggers Market Rout as Tech Stocks Plunge. Brent crude settled at $109.26 per barrel as the Strait of Hormuz, through which a fifth of the world's oil flows, remained closed, prompting traders to abandon expectations of Fed rate cuts and bet on hikes next year.